GitLab (NASDAQ:GTLB) Issues FY 2027 Earnings Guidance

GitLab (NASDAQ:GTLB) issued an update on its FY 2027 earnings guidance on Tuesday. The company provided earnings per share guidance of 0.850-0.870 for the period, compared to the consensus EPS estimate of 0.610. The company issued revenue guidance of $1.1 billion-$1.1 billion, compared to the consensus revenue estimate of $1.1 billion. GitLab also updated its Q3 2027 guidance to 0.190-0.200 EPS.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on GTLB shares. Zacks Research downgraded GitLab from a “strong-buy” rating to a “hold” rating in a research report on Monday, August 3rd. JPMorgan Chase & Co. raised their price target on shares of GitLab from $32.00 to $44.00 and gave the company a “neutral” rating in a report on Wednesday, August 26th. Rosenblatt Securities reaffirmed a “buy” rating and issued a $43.00 price target on shares of GitLab in a research report on Monday, June 1st. Guggenheim reiterated a “neutral” rating on shares of GitLab in a research report on Wednesday, August 19th. Finally, Truist Financial lifted their target price on GitLab from $30.00 to $40.00 and gave the company a “hold” rating in a research note on Thursday, August 20th. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, eighteen have assigned a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $42.25.

GitLab Trading Down 3.1%

GitLab stock opened at $45.09 on Wednesday. GitLab has a 12 month low of $18.73 and a 12 month high of $52.38. The company has a market capitalization of $7.62 billion, a PE ratio of -281.81 and a beta of 0.99. The stock has a 50-day moving average price of $36.06 and a two-hundred day moving average price of $28.83.

GitLab (NASDAQ:GTLB) last released its quarterly earnings data on Tuesday, September 1st. The company reported $0.24 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.18 by $0.06. The company had revenue of $286.25 million for the quarter, compared to analysts’ expectations of $273.13 million. GitLab had a negative net margin of 2.49% and a positive return on equity of 0.31%. The business’s revenue was up 21.3% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.24 EPS. GitLab has set its FY 2027 guidance at 0.850-0.870 EPS and its Q3 2027 guidance at 0.190-0.200 EPS. As a group, analysts predict that GitLab will post -0.18 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Sytse Sijbrandij sold 116,200 shares of the stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $28.44, for a total transaction of $3,304,728.00. Following the completion of the sale, the director directly owned 14,902,051 shares in the company, valued at $423,814,330.44. This represents a 0.77% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Simon Mundy sold 8,725 shares of the firm’s stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $38.00, for a total transaction of $331,550.00. Following the completion of the sale, the chief accounting officer directly owned 105,332 shares of the company’s stock, valued at approximately $4,002,616. This represents a 7.65% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 10.64% of the stock is currently owned by company insiders.

GitLab News Roundup

Here are the key news stories impacting GitLab this week:

• Positive Sentiment: GitLab reported quarterly earnings of $0.24 per share, exceeding the $0.18 analyst consensus, while revenue reached $286.25 million versus expectations of $273.13 million. Revenue grew 21.3% year over year, providing evidence of continued demand for the company’s DevSecOps platform. GitLab Inc. Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: The company issued fiscal 2027 EPS guidance of $0.85-$0.87, well above the $0.61 consensus, and third-quarter EPS guidance of $0.19-$0.20 versus expectations of $0.12. Revenue guidance was broadly in line with estimates, suggesting that the earnings benefit is being driven primarily by improved profitability. GitLab Rallies After Record Bookings and Strong Guidance
• Positive Sentiment: Management highlighted record bookings and strong AI demand, which reinforced the growth outlook and helped drive the post-earnings rally. GitLab’s Q2 2027 Earnings
• Positive Sentiment: BTIG raised its price target from $36 to $52 and maintained a “buy” rating. Cantor Fitzgerald raised its target to $50, while DA Davidson lifted its target to $45. BTIG Research Forecasts Strong Price Appreciation
• Positive Sentiment: Unusually heavy call-option activity ahead of the earnings release reflected increased bullish speculation, with call volume approximately 210% above its average daily level.
• Neutral Sentiment: Despite the improved outlook, GitLab remains unprofitable on a net-income basis, and its shares are trading well above both their 50-day and 200-day moving averages.
• Negative Sentiment: Barron’s cautioned investors against chasing the rally because the stock had already gained substantially over the prior three months. The elevated valuation and recent momentum increase the risk of profit-taking or disappointment if future results do not exceed the newly raised expectations. GitLab Stock Soars After Earnings

Institutional Trading of GitLab

Several hedge funds have recently made changes to their positions in the business. Allworth Financial LP grew its holdings in shares of GitLab by 124.1% in the third quarter. Allworth Financial LP now owns 558 shares of the company’s stock worth $25,000 after purchasing an additional 309 shares during the last quarter. Quarry LP acquired a new stake in GitLab during the third quarter valued at $31,000. Larson Financial Group LLC increased its holdings in GitLab by 92.7% in the 3rd quarter. Larson Financial Group LLC now owns 1,000 shares of the company’s stock worth $45,000 after acquiring an additional 481 shares in the last quarter. Advisory Services Network LLC acquired a new stake in shares of GitLab in the third quarter valued at about $48,000. Finally, Danske Bank A S acquired a new position in shares of GitLab during the 3rd quarter worth approximately $77,000. 95.04% of the stock is currently owned by hedge funds and other institutional investors.

GitLab Company Profile

GitLab Inc (NASDAQ: GTLB) is a leading provider of a unified DevOps platform designed to streamline the software development lifecycle. Founded in 2011 by Dmitriy Zaporozhets and Sid Sijbrandij, the company initially gained recognition for its open-source Git repository manager. Over time, GitLab expanded its offerings to encompass planning, source code management, continuous integration/continuous deployment (CI/CD), security testing, and monitoring in a single application. This integrated approach enables development teams to collaborate efficiently, reduce toolchain complexity, and accelerate release cycles.

The GitLab platform is offered through both cloud-hosted and self-managed deployment models, catering to organizations of all sizes.